Member Login
  1. Category
    2. /
  2. Investing
    3. /
  3. Energy Stocks
    4. /

Energy Stocks

What are energy stocks? 

Energy stocks represent partial ownership in companies that supply electricity and fuel for the global economy. The energy sector in Canada is vast, comprising a large portion of the TSX. Energy stocks include: 

  • Liquefied natural gas companies
  • Natural gas companies 
  • Oil companies 

(Renewable energy stocks are part of the TSX’s utilities sector.)

How can you pick energy stocks?

1. Look for companies with a promising future 

It’s no surprise that the energy sector is under intense scrutiny. With climate change at the front of many people’s minds (from governments to investors), energy companies, old and new, are constantly adapting to a new world. Many people want cleaner energy. And it’s the energy sector’s challenge to make clean energy available — and profitable, too. 

For that reason, investors will do well to look for innovative companies that are actively solving contemporary energy problems. Though we’re not suggesting investors ignore bigger companies in oil or natural gas, we are suggesting you keep an eye on the future as you’re picking your energy stocks. 

Given the direction the world is going, ask yourself: who will be around in 20, 30, or even 40 years? That’s one of the biggest questions you can answer as an energy stock investor. 

2. Analyze an energy company’s financial standing

The future of an energy company depends in part on how it’s handling its finances now. Given that prices within the energy sector are extremely volatile — just look at how the price of gas fluctuates — you want to be sure an energy company has the financial strength to withstand a recession. Some factors you may want to analyze include: 

  • Strong balance sheet: the company should have lots of liquid cash on hand, as well as a capacity to borrow (if needed). It should also have low amounts of debt and a high investment grade. 
  • Low production costs: the company shouldn’t be spending the majority of its revenue on producing energy. The company should have a stable revenue with minimal exposure to price fluctuations. 
  • Conservative dividend payout ratio: though everyone likes to make money on dividends, if a company dishes too much out, it could end up cutting or reducing its dividend program during hard times. 

3. Check here for our writer’s picks

Our writers are constantly analyzing the energy sector, as they look for Canadian energy stocks that are growing, as well as those that are under- or over- valued. Keep checking back here to see which stocks they recommend — and which they don’t. 

[KevelPitch/]

In addition, you should read up on our Renewable Energy Stocks list.

Check back here for the most up to date information about energy stocks.

Top Articles

Energy Stocks

2 Top TSX Energy Stocks to Buy in January 2023

| Robin Brown

Here are two top TSX energy stocks that had a great year in 2022 and could be primed for strong…

Read more »

An engineer works at a hydroelectric power station, which creates renewable energy.
Energy Stocks

Why Algonquin Power & Utilities Stock Slid 49.3% Last Year

| Tony Dong, MSc, CETF®

Here's why shares of AQN fell hard last year.

Read more »

Energy Stocks

Is CNQ Stock a Buy in January 2023?

| Andrew Walker

CNQ stock is down from the 2022 high. Is it time to buy?

Read more »

Energy Stocks

Worried About a Recession? 3 TSX Giants to Outpace the Market

| Aditya Raghunath

Recession-resistant TSX stocks such as Fortis and Hydro One are well poised to deliver outsized returns to shareholders in 2023.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

The Best Energy Dividend Stock for a Decade of Passive Income

| Aditya Raghunath

Canadian Natural Resources is a top TSX stock that has delivered stellar gains to long-term investors. Let's see why CNQ…

Read more »

oil and gas pipeline
Energy Stocks

Enbridge Is a High-Yielding Canadian Dividend Stock to Buy Now and Own Forever

| Adam Othman

Consider adding Enbridge stock to your portfolio, as it still trades below its all-time highs to capture its high-yielding dividend…

Read more »

Dividend Stocks

3 Growth Stocks You Can Buy Right Now with Less Than $100

| Christopher Liew, CFA

Capital of less than $100 is enough to buy one of these three promising growth stocks that don't belong to…

Read more »

Energy Stocks

2 Energy Stocks You Can Buy Right Now to Play The EV Boom

| Adam Othman

Add these two Canadian renewable energy stocks to capitalize on the growing EV popularity.

Read more »

Recent Energy Stocks News

Dividend Stocks

2 Dividend Stocks to Earn Growing Monthly Income

| Haris Anwar

Inter Pipeline Ltd. (TSX:IPL) is one of two dividend stocks that could provide growing monthly income to investors.

Read more »

The Motley Fool
Dividend Stocks

5 Reasons Why a Dollar-Cost Averaging Strategy Can Save You Time and Make You Money

| Jason Phillips

Dollar-cost averaging is a proven strategy that can help reduce the frustration many investors deal with in trying to “time”…

Read more »

Dividend Stocks

Wealth Creators: 3 Dividend Aristocrats That Are Beginning to Rebound off Their 52-Week Lows

| Jason Phillips

Shares in these three dividend aristocrats, including Bank of Nova Scotia (TSX:BNS)(NYSE:BNS), are rebounding off their 52-week lows and offer…

Read more »

The Motley Fool
Dividend Stocks

2 Top Energy Stocks to Buy and Hold in Your TFSA

| Haris Anwar

Suncor Energy Inc. (TSX:SU)(NYSE:SU) is one of two top energy stocks that TFSA investors should consider for their portfolios.

Read more »

Dividend Stocks

2 Safe and Reliable Dividend Stocks for Your RRSP

| Karen Thomas, MSc, CFA

Fortis Inc. (TSX:FTS) (NYSE:FTS) and Enbridge Inc. (TSX:ENB) (NYSE:ENB) boast long histories of reliable dividend income that have made shareholders…

Read more »

Dividend Stocks

Buy Inter Pipeline Ltd. (TSX:IPL) Today and Lock In a 7% Yield

| Matt Smith

Boost income and growth by investing in Inter Pipeline Ltd. (TSX:IPL).

Read more »

The Motley Fool
Dividend Stocks

3 Top Monthly Dividend-Paying Stocks for Retirement

| Mat Litalien, MBA

Monthly dividend payers such as AltaGas Ltd. (TSX:ALA) can provide reliable and stable income for retirees.

Read more »

Dividend Stocks

Retirement Investing? These 4 Dividend Rock Stars Will Make Your RRSP Sing!

| Victoria Hetherington

Fortis Inc. (TSX:FTS)(NYSE:FTS) and three other well-known dividend payers are your retirement picks for the weekend!

Read more »

Energy Stocks

Save the Planet and Get Rich With This Energy Provider

| Demetris Afxentiou

Innergex Renewable Energy Inc. (TSX:INE) holds massive long-term potential for investors that are looking to capitalize on the growing shift…

Read more »

Energy Stocks

Income Investors: Should You Own BCE Inc. (TSX:BCE) or Suncor Energy Inc. (TSX:SU) Stock Today?

| Andrew Walker

BCE Inc. (TSX:BCE)(NYSE:BCE) and Suncor Energy Inc. (TSX:SU)(NYSE:SU) are both top-quality dividend stocks. Is one a bet bet right now?

Read more »

The Motley Fool
Dividend Stocks

3 Top Energy Stocks That Are Rich in Cash Flow and Shareholder Returns

| Karen Thomas, MSc, CFA

Investors would be wise to consider Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ) and Pason Systems Inc. (TSX:PSI) for their high dividend…

Read more »

wind generation facility
Dividend Stocks

3 High-Yield Renewable Energy Stocks for a Green Energy Portfolio

| Andrew Walker

TransAlta Renewables Inc. (TSX:RNW) and another two green energy plays provide an average yield of more than 6%.

Read more »

Dividend Stocks

2 Top Canadian Dividend Stocks for a Self-Directed Retirement Fund

| Andrew Walker

Here's why Bank of Montreal (TSX:BMO)(NYSE:BMO) and a market leader in the energy infrastructure sector deserve to be on your…

Read more »

The Motley Fool
Energy Stocks

Is This Oil Sands Stock a Top Contrarian Pick Today?

| Andrew Walker

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) might be on the verge of a significant rebound.

Read more »

Dividend Stocks

Don’t Miss This Opportunity to Buy Enbridge Inc. (TSX:ENB)

| Matt Smith

Latest results indicate that Enbridge Inc. (TSX:ENB)(NYSE:ENB) is ready to soar.

Read more »

Energy Stocks

These Canadian Energy Stocks Could Surge or Dip on Iranian Oil Developments

| Victoria Hetherington

Vermilion Energy Inc (TSX:VET)(NYSE:VET) could soar on higher oil if Iran follows through with its threat to close the Strait…

Read more »

The Motley Fool
Dividend Stocks

This Is the Best Canadian Renewable Energy Stock – But Should You Buy It?

| Victoria Hetherington

Northland Power (TSX:NPI) is a great alternative to oil-weighted energy stocks, with a forward-looking style. But is it a buy…

Read more »

Dividend Stocks

These 3 Dividend Stocks Are an Absolute Steal!

| Kay Ng

Vermilion Energy Inc. (TSX:VET)(NYSE:VET) and two other stocks offer double-digit returns in the next 12 months, while spitting out generous…

Read more »

Energy Stocks

Will Obsidian Energy Ltd. (TSX:OBE) Ever Unlock Value for Investors?

| Matt Smith

Latest results indicate that Obsidian Energy Ltd.'s (TSX:OBE)(NYSE:OBE) performance is improving but it still has a long way to go…

Read more »

Dividend Stocks

Income Investors: Get 6.6% Yield on a Stock Hitting New 12-Month Highs

| Andrew Walker

Gibson Energy (TSX:GEI) is making good progress on its strategy overhaul and the market is starting to take notice.

Read more »

hydroelectricity facility
Dividend Stocks

Treat This Utility as an Income Stock and You’ll Be Happy

| Kay Ng

Is Emera Inc. (TSX:EMA) not a safe utility anymore? Should you avoid buying the dip?

Read more »

The Motley Fool
Dividend Stocks

Latest Results Highlight Why Pembina Pipeline Corp. (TSX:PPL) Is North America’s Top Energy Infrastructure Stock

| Matt Smith

Strong second-quarter 2018 results confirm why Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) should be a cornerstone holding in every portfolio.

Read more »

Energy Stocks

Latest Results Indicate the Outlook Is Improving for This Oil Sands Stock

| Matt Smith

Athabasca Oil Corp. (TSX:ATH) is ready to unlock value for investors as oil firms further.

Read more »

Dividend Stocks

3 Energy Sector Greats That Pay Impressive Dividends

| Demetris Afxentiou

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Inter Pipeline Ltd. (TSX:IPL) are examples of great long-term investments that have incredibly generous and still-growing…

Read more »

Dividend Stocks

5 Big, Bad Dividends

| James Watkins-Strand

Stocks such as Ensign Energy Services Inc. (TSX:ESI) pay generous dividends, but investors should look for more than just large…

Read more »

dividends
Dividend Stocks

Top Dividend Stocks to Grow Your Retirement Income Fast

| Haris Anwar

Buying top dividend stocks, such as Toronto-Dominion Bank (TSX:TD)(NYSE:TD), is the best way to grow your retirement income.

Read more »

Dividend Stocks

Dividend Investors: 2 Oversold Value Stocks Trading at 52-Week Lows

| Jason Phillips

Attention value investors: These two blue-chip stocks, including BCE Inc. (TSX:BCE)(NYSE:BCE), pay dividends, trade at attractive valuations, and have been…

Read more »

The Motley Fool
Dividend Stocks

2 Top Dividend Stocks to Buy for Your TFSA in August

| Jason Phillips

Find out what makes these dividend-paying stocks such attractive investments in August, including Molson Coors Canada Inc. (TSX:TPX.B)(NYSE:TAP) and one…

Read more »

Dividend Stocks

BCE Inc. (TSX:BCE) vs. Enbridge Inc. (TSX:ENB): Which Dividend Stock Should You Stash in Your TFSA?

| Haris Anwar

Both BCE Inc. (USA) (NYSE:BCE) and Enbridge Inc. (USA) (NYSE:ENB) are two staple stocks for TFSA savers. Find out which…

Read more »

Energy Stocks

This Stock Could Be a Retirement Game Changer!

| Andrew Button

TransCanada Corporation (TSX:TRP)(NYSE:TRP) is a solid dividend stock for the RRSP or TSFA.

Read more »

Dividend Stocks

2 Undervalued Small-Cap Dividend Stocks That Are On Sale Now

| Karen Thomas, MSc, CFA

Consider undervalued stocks Freehold Royalties Limited (TSX:FRU) and Evertz Technologies Limited (TSX:ET) for their very attractive growth profiles and high…

Read more »

Dividend Stocks

Here Are Your 3 Key Takeaways From Enbridge’s (TSX:ENB) Latest Earnings Report

| Jason Phillips

Enbridge Inc (TSX:ENB)(NYSE:ENB) latest earnings report gave investors several key indications that the company is beginning to turn things around.…

Read more »

gas
Dividend Stocks

AltaGas Ltd. (TSX:ALA) Stock +12% Pullback: Time to Buy?

| Kay Ng

A lower share price in AltaGas Ltd. (TSX:ALA) implies a bigger dividend yield -- if the dividend is sustainable.

Read more »

Dividend Stocks

Is the +15% Drop a Value Opportunity?

| Kay Ng

Why is the tank maker ZCL Composites Inc. (TSX:ZCL) tanking after earnings?

Read more »

Dividend Stocks

Lock in a 6% Yield With This Top Energy Stock

| Matt Smith

Bonterra Energy Corp.'s (TSX:BNE) second quarter 2018 results indicate that it is poised to soar as oil moves higher.

Read more »

Energy Stocks

2 Income Beasts With Yields Over 8% to Consider Today

| Ambrose O'Callaghan

Altagas Ltd. (TSX:ALA) and Corus Entertainment Inc. (TSX:CJR.B) offer big income for investors trying to wade through volatility.

Read more »

Energy Stocks

Is This Ultra-High Dividend Stock a Great Buy?

| Andrew Button

High-dividend stocks like Inter Pipeline Ltd. (TSX:IPL) may deliver solid income, but are they worth it?

Read more »

Dividend Stocks

2 Out-of-Favour Canadian Dividend Stocks for Your RRSP

| Andrew Walker

Fortis (TSX:FTS) (NYSE:FTS) and another top dividend-growth stock pay reliable distributions and offer some attractive upside potential.

Read more »

Dividend Stocks

A Low(er)-Risk Strategy for Investing in Cannabis and Cryptocurrencies

| Kris Knutson

Investing in the latest trends can be risky. Stocks such as Canopy Growth Corp. (TSX:WEED)(NYSE:CGC) rise and fall quickly. Reduce…

Read more »

Senior couple at the lake having a picnic
Dividend Stocks

Retirees: 2 Top Dividend Stocks That Pay Over 5%

| David Jagielski

Riocan Real Estate Investment Trust (TSX:REI.UN) and this other dividend stock are two great options to put your retirement savings into.

Read more »